Economy

eridani

(51,907 posts) Tue Feb 23, 2016, 08:04 AM Feb 2016

The US Economy Has Not Recovered and Will Not Recover

http://readersupportednews.org/opinion2/277-75/35303-the-us-economy-has-not-recovered-and-will-not-recover

When long term (more than one year) discouraged workers are included in the measure of unemployment, as once was done, the US unemployment rate is 23%. (See John Williams, shadowstats.com)

Fiscal and monetary stimulus can pull the unemployed back to work if jobs for them still exist domestically. But if the jobs have been sent offshore, monetary and fiscal policy cannot work.

What jobs offshoring does is to give away US GDP to the countries to which US corporations move the jobs. In other words, with the jobs go American careers, consumer purchasing power and the tax base of state, local, and federal governments. There are only a few American winners, and they are the shareholders of the companies that offshored the jobs and the executives of the companies who receive multi-million dollar “performance bonuses” for raising profits by lowering labor costs. And, of course, the economists, who get grants, speaking engagements, and corporate board memberships for shilling for the offshoring policy that worsens the distribution of income and wealth. An economy run for a few only benefits the few, and the few, no matter how large their incomes, cannot consume enough to keep the economy growing.

In the 21st century US economic policy has destroyed the ability of real aggregate demand in the US to increase. Economists will deny this, because they are shills for globalism and jobs offshoring. They misrepresent jobs offshoring as free trade and, as in their ideology free trade benefits everyone, claim that America is benefitting from jobs offshoring. Yet, they cannot show any evidence whatsoever of these alleged benefits. (See my book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West.)

5 replies

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The US Economy Has Not Recovered and Will Not Recover (Original Post) eridani Feb 2016 OP

And In Fact - The Clintons Accelerated This Destruction - And Now Some Would Want Act II cantbeserious Feb 2016 #1

Well, as another global economic crisis is just upcoming... DetlefK Feb 2016 #2

Offshoring abelenkpe Feb 2016 #3

Williams is pulling his numbers out of his rear pinqy Feb 2016 #4

Thank you. I post links to the BLS data on the first Friday of just about every month. mahatmakanejeeves Feb 2016 #5

cantbeserious

(13,039 posts)

1. And In Fact - The Clintons Accelerated This Destruction - And Now Some Would Want Act II

Reply to eridani (Original post)

Tue Feb 23, 2016, 08:30 AM

Feb 2016

eom

DetlefK

(16,423 posts)

2. Well, as another global economic crisis is just upcoming...

Reply to eridani (Original post)

Tue Feb 23, 2016, 08:37 AM

Feb 2016

China is scaling back its heavy industry, for economic and environmental reasons. This drop in production halts the growth of countries with emerging economies... and Big Money has invested big-time there.

Big Money won't see the returns from these investments they expected.

Big Money will become even more cautious to invest.

Due to lack of loans, the global economy will take another hit.

abelenkpe

(9,933 posts)

3. Offshoring

Reply to eridani (Original post)

Tue Feb 23, 2016, 09:50 AM

Feb 2016

How I know you well. Any candidates running who oppose offshoring?

pinqy

(596 posts)

4. Williams is pulling his numbers out of his rear

Reply to eridani (Original post)

Tue Feb 23, 2016, 10:57 AM

Feb 2016

Williams claims that he is adding those people who would be classified as discouraged (willing and available to work but who stopped looking for work because they believed they would be unsuccessful) but who do not meet the time requirement of having looked for work in the last year to the U-6 measure of underutilization (unemployed plus all marginally attached plus working part time for economic reasons). Besides the fact that nobody has ever included people with jobs as unemployed and that marginally attached (willing and available to work, looked in past 12 months but not last 4 weeks..includes discouraged as a sub-set) was not even a category before 1994, the number of people Williams claims should be considered discouraged is ludicrous.

The U-6 is (Unemployed + Marginally Attached + Part Time for Economic Reasons)/(Labor Force + Marginally Attached)
(U+M+P)/(L+M) In Jan 2016, that was (7,791,000+2,089,000+5,988,000)/(158,335,000+2,089,000)= 15,868,000/160,424,000 = 9.9%
To get Williams' number we add his discouraged (D) into the equation with a result of 22.9% (U+M+P+D)/(L+M+D) =.229
(15,868,000+D)/(160,424,000 +D)=.229
15,868,000 + D = 36,737,096 + .229D
.771D= 20,869,096
D = 27,068,000

Really? Considering that the total number of people who say they want a job but did not look in the last 12 months is only 3,454,000 ( http://www.bls.gov/cps/cpsaat35.htm )?

There is absolutely no justification to any of Shadowstats data.

mahatmakanejeeves

(57,567 posts)

5. Thank you. I post links to the BLS data on the first Friday of just about every month.

Reply to pinqy (Reply #4)

Tue Feb 23, 2016, 01:03 PM

Feb 2016

Here's the thread for February 5, 2016:

Payroll employment rises by 151,000 in January; unemployment rate changes little (4.9%)

Best wishes.

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